Dollar rises to three-week high after upbeat US housing data
The pair jumped to three-week high (107.80), up almost 0.6% since opening, as dollar regained traction and rose against its major counterparts.
Record rise in US pending home sales (44.3% in May vs 18.9% forecast) additionally boosted the greenback.
Fresh bullish acceleration broke through a cluster of barriers at 107.39/58 zone (55/30/20DMA / Fibo 38.2% of 109.85/106.07 fall) and emerged above thickening and ascending daily cloud, which could generate reversal signal on close above these levels.
Rising 14-d momentum on daily chart is on border of positive territory and 10/20/30 DMA’s turned to bullish setup, supporting the notion.
Bulls eye barrier at 107.96 (daily Kijun-sen / 50% retracement) which guards pivots at 108.37/40 (200DMA / Fibo 61.8% of 109.85/106.07).
Daily close above broken Fibo 38.2% barrier (107.51) is seen as minimum requirement to confirm bullish stance.
Res: 107.80; 107.96; 108.40; 108.95
Sup: 107.51; 107.39; 107.04; 106.80